Affiliate Programs

Basically it is in so-called affiliate programs to a sometimes complex form of partner programs for which the sales model is based on a performance-based compensation. The advertiser pays for its advertising only in the event of success, which is often the sales period.

The revenue share is thus the advertisers to the intermediary, in this the website operator who places the advertisement of the advertiser where appropriate.

The market of affiliate marketing is focused on three levels: consumer, advertisers - the so-called 'merchants' - as well as the website owners known as 'affiliates' or 'publisher'. This format is also the terminology: The basic form of marketing is the reach of the website operator.

Attractiveness of affiliate programs

In addition to the now many major internet portals, which have a correspondingly large range of visitors and page views exist, as many small platforms, which constitute in themselves no meaning for advertisers. The reason is the lack of coverage that extends benefits and costs for relevant advertising placements are not in the ordinary business relationship.

Website owners place ads in the relevant area of interest so as to strengthen the affinity between content and advertising. The advertising materials are linked to the landing pages of advertisers. If these are clicked by visitors, the website operator retains a previously defined performance-based remuneration.

Technology

For the detection of a successful mediation by the website operator to the advertisements, graphic or textual advertisements in the form of html codes are integrated into the page. This html code includes a unique Affiliate ID, so that transactions can be allocated accurately. Further information: HTML

Risk and compensation

The big advantage for advertisers is the moment of the advertising costs. These occur only at the moment, if indeed one for him more or less attractive action can be triggered.

The smallest form of an action is a click on a banner or a text ad that point mostly to a landing page of the advertiser.

The next stage is called leads, that is incurred by the potential customer inquiries or disclosure of customer data that allows the advertisers continue to use such as first and last name, email address, postal address, telephone and so on.

The highest form of success fee is the production of orders. These are set by the advertisers paid according to the highest, which is why they are for website operator acting on the most interesting.

The website operator bears the risk that he used the publication can not be clicked, and he therefore does not receive a success fee.

Again, he bears the costs of running the website, which is why he is interested to involve all the more attractive advertising and affiliates. Of almost all advertising material are sales-oriented.

Market functionality

As explained prevent website owners advertising means the merchant. As the number of small and medium sized websites for advertisers, however, is very large and unmanageable, the vendors have specialized in creating the interface between Merchants and Affiliates.

These specialists connect with advertisers in touch and offer them turn their large network of website operators and join the working range.

Website operators should apply with their site offer at the interface providers to place ads on their platform. The interface provider control the contents of the side deals before, so the quality demands of advertisers' needs.

Summary

Affiliate programs have become the standard program of large advertisers. They concentrate the risk in the website operators, since payments are only paid on success. So-called affiliate networks aggregating the large number of small and medium-sized portals in order to minimize the transaction costs of advertisers for installing these programs and also benefit proportionately to performance factors.